Equinix to invest $74 million to set up data centre facility in Indonesia

Internet exchange company Equinix Inc is planning to invest $74 million to set up a data centre facility in Indonesia’s capital Jakarta. The eight-storey facility will be located in Jakarta’s Central Business District and will be operational in the second half of 2024. 

The new facility will store Equinix’s interconnected data centres called International Business Exchange (IBX). The US-based company claims that its IBX data centre will provide a digital infrastructure to local businesses as well as global companies looking to expand and tap into Indonesia’s expanding digital company.

Equinix currently owns and operates a network of over 240 IBX data centres located in 70 metros spread across the world. Its digital infrastructure is used by over 10,000 leading businesses across the globe.  

The company entered India in September 2021 after acquiring the India operations of GPX Global Systems, which includes two data centre facilities in Mumbai for $161 million. In June, the company also announced that it will invest $86 million to build another data centre facility in Mumbai and invest over $64 million for its first data centre in Chennai. 

Equinix has 51 data centres in the Asia-Pacific region located in metros across China, Australia, Japan, South Korea, Hong Kong, and Singapore.

According to Equinix, Indonesia is the largest digital economy in Southeast Asia and is expected to be a key hub of interconnection in the region.

All major cloud service providers including AWS, Microsoft, and Google Cloud have set up cloud regions in Indonesia. Cloud regions are a distributed network of data centres set up across the world by cloud companies to improve global coverage, reduce latency, and reduce the risk of infrastructure outage in case of a cyberattack or natural disaster. 

“Our IBX data centre in Jakarta will add a strategically important, high-growth market to our extensive network of interconnected data centres across the world,” Jeremy Deutsch, President, Asia-Pacific, Equinix said in a statement. 

Internet Exchange is a critical part of how the modern-day Internet works. It includes a network of data centres with network switches that route traffic between the different network operators. It is used by Internet infrastructure companies such as Internet Service Providers (ISPs), cloud service providers (CSPs), content delivery networks (CDNs), online enterprises, and communication SaaS providers.